Global bond sell-off deepens as $100 oil stokes stagflation fears

Global borrowing costs came under further pressure on Friday as soaring energy costs clouded the economic outlook for many countries. The yield on German 10-year government bonds, seen as the euro area benchmark and a traditional safe haven, crossed 3.5% for the first time since April 2011, according to LSEG data. The U.S. 10-year note yield, crucial for credit cards and mortgage rates, nudged slightly higher after surpassing 4.9% for the first time in three years on Thursday. Japan's 10-year yield jumped 6 basis points on Friday, though it remained just shy of the 1996 high it reached last week. Yields were broadly higher across Asia Pacific, with Australia's 10-year up 12 basis points and South Korea up 8 basis points.Oil prices eased on Friday, but remained around the $100-a-barrel threshold, with international benchmark Brent Crude futures at $105.4 a barrel, while European natural gas futures hit their highest level since 2022. Investors are nervous about the mounting debt loads and spending plans of rich countries around the world, and analysts at Deutsche Bank said "fears about stagflation" — low economic growth and high inflation — were rippling through multiple asset class...